The approximate version of IRP is is - ipound F($/pound)-S($ / pound) S($ / pound) Suppose the current spot rate is S($/pound)=$1.5, and one-year forward rate is F($/pound)=$1.8. So, (F-S)/S = % (please insert the number in percentage). It means pound is selling at a forward (please insert premium or discount) of %. Therefore (please insert USD or pound) is expected to appreciate in value in one year. According to IRP, we should expect the interest rate in (please insert US or UK) will be higher by %